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Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 1
Past and Future of Clean
Development Mechanism (CDM) in the
Arab World
Meeting of the Climate Change Working Group
Arab Integrated Water Resources Management Network
29-30 July 2009
Beirut, Lebanon
Mohamed Abdelraouf
Program Manager, Environment Research, GRC, Dubai
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 2
Contents
CDM
CDM Project Cycle
CDM projects in 2009 Worldwide
CDM in the Arab World CDM: Registered projects
CDM: Requesting Registration
Al-Shaheen Oil Field Project
Why no CDM in the Oil & Gas Industry?
Future of CDM in the Arab World
CDM Issues for post 2012
NGOs role in CDM
Conclusion
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 3
Clean Development Mechanism
Joint Implementation (JI) The mechanism known as “joint
implementation,” defined in Article 6 of the Kyoto Protocol, allows a country
with an emission reduction or limitation commitment under the Kyoto
Protocol (Annex B Party) to earn emission reduction units (ERUs) from an
emission-reduction or emission removal project in another Annex B Party,
each equivalent to one tonne of CO2, which can be counted towards
meeting its Kyoto target.
Clean Development Mechanism (CDM) The Clean Development
Mechanism (CDM), defined in Article 12 of the Protocol, allows a country
with an emission-reduction or emission-limitation commitment under the
Kyoto Protocol (Annex B Party) to implement an emission-reduction project
in developing countries. Such projects can earn saleable certified emission
reduction (CER) credits, each equivalent to one tonne of CO2, which can be
counted towards meeting Kyoto targets.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 4
In other words, CDM aims to “generate cost-
efficient emission reductions through
investment in developing countries that
reduces GHG emissions and the compliance
costs for Annex I Parties, and to promote
sustainable development in developing
countries.” [Streck, 2 Env. Liability, 2007, 92]
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 5
Baseline emissions (BAU)
Emission reductions
Crediting
Period
GH
G e
mis
sio
n
Project
Implementation
equals Carbon Credits
(CERs)
Emissions from CDM project
CDM facilitates the investment in GHG reduction projects …
… and allows for the monetization of the resulting emission reductions
What is the Clean Development
Mechanism?
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 6
CDM
Kyoto is not about money only it is an incentive for
better environmental management.
Environmental laws should encourage beyond
Business As Usual (BAU).
Additionality:
Environmental;
Economic;
Technological …etc.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 8
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 9
CDM projects in 2009
Worldwide
CDM projects in greater Mena
expected to increase dramatically!Source: UNFCCC
Location of registered projects
India: 31%
China: 22%
Brazil: 13%
Mexico: 9%
Other: 23%
MENA: 14 registered CDM project
Egypt : 4
Morocco: 4
Tunisia: 2
Qatar: 1; UAE 1
Jordon: 1; Syria 1
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 10
CDM: Registered Projects
Project Title
Host
Country
Registeration
Status Sectoral scopes Activity Size
ADFEC 10 MW Solar Power Plant. UAE 08-Jun-09
1 : Energy industries (renewable - /
non-renewable sources) SMALL
Al-Shaheen Oil Field Gas Recovery and
Utilization Project Qatar 29-May-07
10 : Fugitive emissions from fuels
(solid, oil and gas) LARGE
Dir Baalbeh Landfill Gas Capture Project in
Homs Syria 16-Mar-09
10 : Fugitive emissions from fuels
(solid, oil and gas) LARGE
Fuel Switching Project of the Aqaba
Thermal Power Station (ATPS) Jordan 30-Sep-08
1 : Energy industries (renewable - /
non-renewable sources) LARGE
Catalytic N2O destruction project in the tail
gas of the Nitric Acid Plant of Abu Qir
Fertilizer Co. Egypt 07-Oct-06 5: chemical industries LARGE
Onyx Alexandria Landfill Gas Capture and
Flaring Project Egypt 15-Dec-06 13: Waste handling and disposal LARGE
Zafarana Wind Power Plant Project Egypt 22-Jun-07
1: Energy industries (renewable - /
non-renewable sources) LARGE
Waste Gas-based Cogeneration Project at
Alexandria Carbon Black Co. Egypt 26-Jul-08
1 : Energy industries (renewable - /
non-renewable sources) LARGE
Essaouira wind power project Morocco 29-Oct-05 1 Energy Industries LARGE
Photovoltaic kits to light up rural
households in Morocco Morocco 28-Apr-06
2 : Energy industries (renewable - /
non-renewable sources) SMALL
OULJA Landfill gas recovery and flaring Morocco 06-Nov-07 13 : Waste handling and disposal SMALL
Tétouan Wind Farm Project for Lafarge
Cement Plant Morocco 23-Sep-05
Sectoral scope 1: Energy industries
(renewable - / non-renewable sources) SMALL
Landfill Gas Recovery and Flaring for 9
bundled landfills in Tunisia Tunisia 23-Nov-06 13: Waste handling and disposal LARGE
Djebel Chekir Landfill Gas Recovery and
Flaring Project – Tunisia Tunisia 06-Oct-06 13: Waste handling and disposal LARGE
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 11
CDM: Requesting Registration
Project Title
Host
Country Sectoral scopes
Activity
Size
Abu Dhabi solar thermal power
project, Masdar UAE
1 : Energy industries (renewable -
/ non-renewable sources) LARGE
Biogas Technology Group Ras
Al-Khaimah Landfill Gas to
Energy Project UAE 13 : Waste handling and disposal LARGE
Soroosh & Nowrooz Early Gas
Gathering and Utilization
Project (S&N project) Iran
10 : Fugitive emissions from fuels
(solid, oil and gas) LARGE
Tal Dman Landfill Gas Capture
Project in Aleppo Syria 13 : Waste handling and disposal LARGE
Reduction of Methane
Emissions from Ruseifeh
Landfill Jordan 13 : Waste handling and disposal LARGE
Egyptian Brick Factory GHG
Reduction Project Egypt
1 : Energy industries (renewable -
/ non-renewable sources) LARGE
Surac Bagasse Plant Project Morocco
1 : Energy industries (renewable -
/ non-renewable sources) SMALL
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 12
Al-Shaheen Oil Field
Project
Qatar Avoided Flaring Project, Registered May 29, 2007 (path to
registration took one year), aiming at Recovery and utilization of gas
from oil wells that would otherwise be flared.
Shaheen field (flare reduction) first project in the region and third petroleum
project world-wide. Registered CDM Projects– “Rang Dong”,
Vietnam– “Kwale”, Nigeria – Al-Shaheen”, Qatar.
The project activity has three main components:
1. Recovery of associated gas.
2. Transmission of associated gas along a pipeline.
3. Processing of the associated gas at the gas processing plant, and local
end-user utilization.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 13
Al-Shaheen oil field
Project
Al-Shaheen oil field has flared the associated gas since the oil
field began operations in 1994. Prior to the project activity, the
facilities, used 125 t/day of associated gas for power & heat
generation and the remaining 4100 t/day was flared.
Total gas production after the completion of the project activity
is 5000 t/day.
- 2800-3400 t/day is exported to QP.
- 680 t/day is for on-site consumption.
- 900 t/day is flared.
The project activity will reduce GHG emissions by 2.5 million
t/CO2per year.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 14
Al-Shaheen oil field
Project
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 15
CDM projects in the
region
Projects in the region especially gulf region are very huge and
takes some time to develop (special characteristics of the region).
Bureaucratic procedures.
In the Middle East either no knowledge or there is
misunderstanding.
Now projects moving fast as awareness is raised on all levels.
Only one local company, Masdar in Abu Dhabi.
Currently various CDM projects under study in various fields like
renewable energy, waste, cement…etc.
No sinks. So need to focus on clean technology.
Main obstacles: the transfer of technology.
Effectively became active in 2005.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 16
Why no CDM the Oil &
Gas Industry?
Political will.
Lack of education and awareness (even tax-wise).
Development is happening so fast and the region wants to use themoney to develop as much as they can.
Lack of infrastructure and capacity (expertise) in private and publicsectors.
Process takes more time especially in big oil companies.
Belief that it is against the oil business.
No need for extra few thousands that would accrue out of CDM.
Can‟t stop or change production so easily …unlike in cement whereinovernight changes are possible.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 17
Other oil & gas sector
opportunities
Approved CDM Methodologies:
1. Gas transmission compressor stations:
Leak detection & repair program.
Waste heat recovery.
Wet to dry seal replacement.
2. Gas processing plants:
Waste heat recovery.
Avoided flaring.
3. Oil Refineries:
Waste gas/heat/pressure recovery systems.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 18
Future of CDM
Development here is very fast, political support and funds are
available, awareness is growing.
Additional revenue source based on carbon credit sales.
All types of activities like Cement, Landfills, Industrial efficiency,
Waste mgt., Industrial processes, Agriculture sector, Land Use
change and Forestry Inventory.
Energy efficiency projects in the Gulf can save millions and reduce
tons of co2 emissions and yet qualify as CDM project.
Renewable energy holds great potential for the region, like
biomass in Asia. Here it could be solar energy.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 19
Future of CDM
Masdar, Abu Dhabi to work with Dubai Aluminum
Company Limited (Dubal) to develop and register a
project under the CDM of Kyoto to reduce greenhouse
gas emissions from aluminum smelting, to claim credits
of reduced GHGs at Dubal smelter at Jebel Ali.
Doha Bank plans to launch the Arabian Gulf‟s first
carbon credits exchange this year to tap an emerging
market for emissions trading.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 20
• Each additional ton of CO2 transferred as a CER entitles an Annex I country to effectively increase its cap, while remaining in compliance
– Thus, the more CERs generated, the more Annex I parties can increase emissions
• Technology Transfer has not significantly increased
• “Additionality” (the emissions reduction is „additional‟ to reductions that would have occurred in the absence of the project) has not always been properly evaluated, and many projects have later been proven not to be additional
• The CDM Executive Board is overworked and doesn‟t scrutinize projects properly
• Inequitable Geographic Distribution of Projects
CDM Criticism
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 21
• Carbon Capture and Sequestration (CCS)
• Nuclear
• Both above technologies are recognized as “options” for mitigation and stabilization
• US and other industrialized countries, as well as some Arab States are investing heavily and are interested in expanding capacities
CDM Issues for post 2012
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 22
NGOs role in CDM
Public image.
Active in many fields like human rights, environment, social
services, woman, disasters, children…etc.
Family and tribal roles are still present.
Members are usually Foreigners/ expatriates rather than locals
(Gulf Status).
Initially, awareness raising (for individuals, public and private
sectors.
As watchdogs to monitor, foster and propose CDM projects for
different industries.
Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 23
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United Arab Emirates
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